Commentary
President Donald Trump’s return to office is accelerating U.S. decoupling from China, threatening Beijing’s fragile economy with tariffs and legislative crackdowns.
With his return to the White House, Trump is ramping up his tough-on-China trade policies, vowing to impose higher tariffs and stricter restrictions. Emboldened by his leadership, U.S. lawmakers are pushing legislation to economically cripple the Chinese Communist Party (CCP), including a bill introduced on Jan. 23 to
revoke China’s Most Favored Nation trading status.
The
Restoring Trade Fairness Act, introduced by House Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-Mich.) and Rep. Tom Suozzi (D-N.Y.) on Jan. 23, aims to revoke China’s Permanent Normal Trade Relations (PNTR) status.
The bipartisan bill follows Trump’s executive order directing officials to review legislative proposals on PNTR. Initially granted in 2000 under the expectation that China would adopt fair trading practices, PNTR status has instead facilitated the depletion of U.S. manufacturing, intellectual property theft, and economic coercion by the CCP.
The bill introduces a new tariff structure, including a minimum
35 percent tariff on non-strategic goods and a 100 percent tariff on strategic goods, phased in over five years. It also ends China’s de minimis treatment, limiting its ability to ship low-value goods tariff-free into the United States. Additionally, tariff revenue would support American farmers, manufacturers, and military preparedness in the Pacific.
With bipartisan support and parallel legislation introduced in the Senate by Sen. Tom Cotton (R-Ark.) and Jim Banks (R-Ind.), the bill underscores the growing consensus that the Chinese regime’s
economic aggression requires decisive action. The U.S. International Trade Commission found that tariffs have successfully reduced reliance on Chinese imports without significantly impacting inflation, further justifying the move. Supporters argue that revoking China’s PNTR status is critical to restoring American industrial capacity, safeguarding national security, and countering CCP economic coercion.
China’s economy is already struggling, making it poorly positioned to withstand further stress from Trump’s new tariffs on
$500 billion worth of Chinese goods. Although Beijing reported that China met its 5 percent growth target for 2024, this marks one of the slowest growth rates in decades, weighed down by a prolonged property crisis, high local government debt, and rising youth unemployment.
In a 2024 survey conducted by China’s central bank, it was revealed that 62 percent of individuals preferred saving over spending or investing, a significant increase from 44 percent in 2018. Additionally, only 10 percent of respondents had a positive view of China’s job market, down from 16 percent in 2018.
Amid Beijing’s efforts to stabilize the real estate market, boost domestic demand, and navigate shifts in global trade, the implementation of Trump’s tariffs adds another layer of uncertainty to the already delicate economy. Consequently, the Chinese Communist Party (CCP) has taken steps to censor negative economic commentary, pressuring analysts and influencers to refrain from criticizing the government’s economic policies.
On a different note, the process of decoupling from China is expected to enhance U.S. national security and aid in rebuilding America’s manufacturing sector. This shift will also lead to increased investment, job opportunities, and economic development in U.S. allies throughout Asia, as companies from not only the U.S. but also Europe and other regions choose to relocate from China to avoid tariffs imposed by the United States.
Please note that the opinions expressed in this article are those of the author and may not necessarily align with the views of The Epoch Times.
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